Judge Engoron fines Trump more than $350M, bars him from running businesses in N.Y. for 3 years

The judge who presided over a civil business fraud trial against Donald Trump on Friday ordered the former president, his sons, business associates and company to pay over $350 million in damages and temporarily limited their ability to do business in New York.

Judge Arthur Engoron ordered the former president and the Trump Organization to pay over $354 million in damages, and bars Trump “from serving as an officer or director of any New York corporation or other legal entity in New York for a period of three years,” including his namesake company.

The ruling also bars Trump and his company from applying for any bank loans for three years.

The decision is a potential blow to both Trump’s finances and persona — having built his brand on being a successful businessman that he leveraged in his first run for president. Trump is currently running for the White House for a third time. This case is just one of many he is currently facing, including four separate pending criminal trials, the first of which is scheduled to begin on March 25.

Engoron also continued “the appointment of an Independent Monitor” and ordered “the installation of an Independent Director of Compliance” for the company.

During the trial, Trump and executives at his company, including his sons Donald Trump Jr. and Eric Trump, attempted to blame exaggerated financial statements that were the heart of New York Attorney General Letitia James’ fraud case on the accountants who compiled them. Engoron disagreed.

“There is overwhelming evidence from both interested and non-interested witnesses, corroborated by documentary evidence, that the buck for being truthful in the supporting data valuations stopped with the Trump Organization, not the accountants,” he wrote. 

The judge also cited the lack of remorse by Trump and his executives after the fraud was discovered as showing the need for a monitor.

“Their complete lack of contrition and remorse borders on pathological. They are accused only of inflating asset values to make more money. The documents prove this over and over again. This is a venial sin, not a mortal sin. Defendants did not commit murder or arson. They did not rob a bank at gunpoint. Donald Trump is not Bernard Madoff. Yet, defendants are incapable of admitting the error of their ways,” Engoron wrote.

“Defendants’ refusal to admit error — indeed, to continue it, according to the Independent Monitor — constrains this Court to conclude that they will engage in it going forward unless judicially restrained,” he added. 

The ruling also bars the Trump sons — who’ve been running the company since their father went to the White House — “from serving as an officer or director of any New York corporation or other legal entity in New York for a period of two years.”

Trump Jr. tweeted that, “We’ve reached the point where your political beliefs combined with what venue your case is heard are the primary determinants of the outcome; not the facts of the case! It’s truly sad what’s happened to our country.”

Trump attorney Alina Habba called the verdict “a manifest injustice — plain and simple.”

“Given the grave stakes, we trust that the Appellate Division will overturn this egregious verdict and end this relentless persecution against my clients,” she said in a statement.

A spokesperson for Trump Organization called the ruling “a gross miscarriage of justice. The Trump Organization has never missed any loan payment or been in default on any loan.”

An appeal in the case would likely take years, but Trump could have to post a bond for the full amount if he does so.

Read more: Trump faces about $400 million in legal penalties. Can he afford it?

The judgment is the second this year against Trump after he was hit last month with an $83.3 million verdict in writer E. Jean Carroll’s defamation case against him. Trump has said he plans to appeal that verdict as well, but would have to post a bond for that amount as well.

The former president could also face four criminal trials this year as his presidential campaign barrels toward the November election, with the first set to begin in New York state court on March 25th.

James had been seeking $370 million from Trump, his company and its top executives alleging “repeated and persistent fraud” that included falsifying business records and financial statements. James had argued those financial statements were at times exaggerated by as much as $2.2 billion.

James contended the defendants used the inflated financial statements to obtain bank loans and insurance policies at rates he otherwise wouldn’t have been entitled to and “reaped hundreds of millions of dollars in ill-gotten gains.”

Trump had maintained his financial statements were conservative, and has called the AG’s allegations politically motivated and a “fraud on me.”

“This is a case that should have never been brought, and I think we should be entitled to damages,” Trump told reporters when he attended closing arguments in the case on Jan. 11. 

The months–long civil trial included testimony from Trump and his oldest children. The former president was combative in his day on the stand, blasting James as a “hack” and calling the judge “extremely hostile.”

Trump repeatedly complained about Engoron before and throughout the trial, and the judge slapped him with a partial gag order after he started blasting the judge’s law clerk as well. Trump’s complaints led to a flood of death threats against the clerk, as well as Engoron, court officials said, and Trump was fined $15,000 for twice violating the order.

Among the examples cited as fraud by the attorney general’s office during the trial was Trump valuing his triplex home in Trump Tower in New York City at three times its actual size and value, as well as including a brand value to increase the valuation of his golf courses on the financial statements, which explicitly said brand values were not included.

Another example pointed to by the attorney general clearly got under his skin — a dispute over the value of Mar-a-Lago, his social club and residence in Florida. Trump’s financial statements from 2011 to 2021 valued Mar-a-Lago at $426 million to $612 million, while the Palm Beach County assessor appraised the property’s market value to be $18 million to $27 million during the same time frame. Trump had also fraudulently puffed up the value of the property by saying it was a private residence, despite having signed an agreement that it could only be used as a social club to lower his tax burden.

Trump maintained during the trial the property was worth much, much more.

“The judge had it at $18 million, and it is worth, say, I say from 50 to 100 times more than that. So I don’t know how you got those numbers,” Trump testified, adding later that he thinks it’s actually worth “between a billion and a billion five.” 

James’ investigation into the former president’s business began in 2019 as a result of congressional testimony from his former personal lawyer Michael Cohen, who told the House Oversight Committee that Trump would improperly expand and shrink values to fit whatever his business needs were.

James filed a suit seeking $250 million in damages from Trump in 2022, and the judge appointed a monitor to oversee the company’s finances that November.

In a summary judgment ruling the week before the trial started, Engoron found Trump and his executives had repeatedly engaged in fraud. The “documents here clearly contain fraudulent valuations that defendants used in business, satisfying [the attorney general’s] burden to establish liability as a matter of law against defendants,” the judge wrote, while denying Trump’s bid to dismiss the case.

Engoron summarized the Trump defense as “the documents do not say what they say; that there is no such thing as ‘objective’ value; and that, essentially, the Court should not believe its own eyes.”

The order, which Trump appealed, held that Trump’s business certificates in New York should be canceled, which could have wreaked havoc on Trump’s company and forced the selloff of some assets.

Engoron backed off of that decision in his ruling Friday, saying the addition of the “two-tiered oversight” of the monitor and the compliance director makes that move “no longer necessary.”

Trump had complained about the summary judgment ruling while he was on the witness stand. “He said I was a fraud before he knew anything about me, nothing about me,” Trump said. “It’s a terrible thing you did.”